Alta Ski Company's inventory records contained the following information regarding its latest ski model. The company uses a periodic inventory system.

Required:

1. 1a. Which method, FIFO or LIFO, will result in the highest cost of goods sold figure for January 2021?

2. 1b. Which method will result in the highest ending inventory balance?

3. 2. Compute cost of goods sold for January and the ending inventory using both the FIFO and LIFO methods.

4. 3a. Assume that inventory costs were declining during January. The inventory purchased on January 15 had a unit cost of $85, and the inventory purchased on January 21 had a unit cost of $80. All other information is the same. Which method, FIFO or LIFO, will result in the highest cost of goods sold figure for January 2021?

5. 3b. Which method will result in the highest ending inventory balance?

6. 3c. Compute cost of goods sold for January and the ending inventory using both the FIFO and LIFO methods.

Limited Resources
Assume Fender produces only three guitars: the Stratocaster, Telecaster, and Jaguar. A limitation of 960 labor hours per week prevents Fender from meeting the sales demand for these products. Product information is as follows:

Required   
Determine the weekly contribution from each product when total labor hours are allocated to the product with the highest.
1. Unit selling price.
2. Unit contribution margin.
3. Contribution per labor hour.
(Hint: Each situation is independent of the others.)

  
Determine the opportunity cost the company will incur if management requires the weekly production of 15 Jaguars.  Hint: You want to maximize short-run profit. Think about which guitar is most profitable.
$Answer

Alta Ski Company's inventory records contained the following information regarding its latest ski model. The company uses a periodic inventory system.

Required:

1. 1a. Which method, FIFO or LIFO, will result in the highest cost of goods sold figure for January 2021?

2. 1b. Which method will result in the highest ending inventory balance?

3. 2. Compute cost of goods sold for January and the ending inventory using both the FIFO and LIFO methods.

4. 3a. Assume that inventory costs were declining during January. The inventory purchased on January 15 had a unit cost of $85, and the inventory purchased on January 21 had a unit cost of $80. All other information is the same. Which method, FIFO or LIFO, will result in the highest cost of goods sold figure for January 2021?

5. 3b. Which method will result in the highest ending inventory balance?

6. 3c. Compute cost of goods sold for January and the ending inventory using both the FIFO and LIFO methods.

In the current tax year, IRS, the internal revenue service of the United States, estimates that five persons of the many high network individual tax returns would be fraudulent. That is, they will contain errors that are purposely made to cheat the government. Although these errors are often well concealed, let us suppose that a thorough IRS audit will uncover them.

Given this information, if a random sample of 100 such tax returns are audited, what is the probability that exactly five fraudulent returns will be uncovered? Here, the number of trials is n=100. And p=0.05 is the probability of a tax return will be fraudulent. Answer the following questions.

1. What is the probability that five fraudulent returns will be uncovered based on 100 IRS audits ? (n=100, p=0.05)
2. If a random sample of 250 high net worth tax returns are audited, what is the probability that the IRS will uncover at least 15 fraudulent errors? (n=250 and P= 0.05)
3. If a random sample of 250 high net worth tax returns are audited, what is the probability that the IRS would uncover at least 15 fraudulent returns but at most 20 fraudulent returns? (n=250 and P= 0.05)
4. What is the probability that out of the 250 randomly selected high net worth tax returns no fraudulent return is uncovered? (n=250 and P= 0.05)
5. Aside from the ethics of tax fraud and based solely on your answers to questions 1-4, do you think it would be advisable to cheat on your tax return? Do you need more information to decide? What type of information?

In the current tax year, IRS, the internal revenue service of the United States, estimates that five persons of the many high network individual tax returns would be fraudulent. That is, they will contain errors that are purposely made to cheat the government. Although these errors are often well concealed, let us suppose that a thorough IRS audit will uncover them.

Given this information, if a random sample of 100 such tax returns are audited, what is the probability that exactly five fraudulent returns will be uncovered? Here, the number of trials is n=100. And p=0.05 is the probability of a tax return will be fraudulent. Answer the following questions.

1. What is the probability that five fraudulent returns will be uncovered based on 100 IRS audits ? (n=100, p=0.05)
2. If a random sample of 250 high net worth tax returns are audited, what is the probability that the IRS will uncover at least 15 fraudulent errors? (n=250 and P= 0.05)
3. If a random sample of 250 high net worth tax returns are audited, what is the probability that the IRS would uncover at least 15 fraudulent returns but at most 20 fraudulent returns? (n=250 and P= 0.05)
4. What is the probability that out of the 250 randomly selected high net worth tax returns no fraudulent return is uncovered? (n=250 and P= 0.05)
5. Aside from the ethics of tax fraud and based solely on your answers to questions 1-4, do you think it would be advisable to cheat on your tax return? Do you need more information to decide? What type of information?

Hint: For z-scores with a magnitude greater than 3.8, we know from the z-table that the probability of a random case or sample mean being further from the population mean is less than .0001. This is true if z is 3.9, -4, or 24. Basically, if a case is that much of an outlier, it’s really unlikely

1. In Wisconsin in 2014, there was a mean of 1128.8 injury-related emergency room visits per day (population mean), with a standard deviation of 349.3 (population standard deviation). a) In a random sample of 81 days, what is the probability that the sample mean for number of injury-related emergency room visits in Wisconsin is lower than 1000? b) In a random sample of 49 days, what is the probability that the sample mean for this variable is between 1,100 and 1,200?

2. Average beer consumption per capita in America is 78.4 liters per year, with a standard deviation of 37.6 liters. a) What is the probability that a random sample of 90 Americans produces a mean for beer consumption between 70 and 75 liters per year? b) What is the probability that a random sample of 10 Americans would drink on average more than 100 liters in a year?

3. Last season, the Milwaukee Bucks’ Giannis Antetokounmpo scored a mean of 26.9 points per game, with a standard deviation of 6.2 points. What is the probability that, in a random sample of 9 games from last season, Giannis would average over 30 points per game?

(a)

Susan tries to exercise at ”Pure Fit” Gym each day of the week, except on the weekends (Saturdays and Sundays). Susan is able to exercise, on average, on 75% of the weekdays (Monday to Friday).

1. Find the expected value and the standard deviation of the number of days she exercises in a given week. [2 marks]

2. Given that Susan exercises on Monday, find the probability that she will exercise at least 3 days in the rest of the week. [3 marks]

3. Find the probability that in a period of four weeks, Susan exercises 3 or less days in only two of the four weeks.

b) A car repair shop uses a particular spare part at an average rate of 6 per week. Find the probability that:

i. at least 6 are used in a particular week.

ii. exactly 18 are used in a 3-week period.

iii. exactly 6 are used in each of 3 successive weeks.

[2 marks] [3 marks] [3 marks]

(c) The breaking strength (in pounds) of a certain new synthetic piece of glass is normally distributed, with a mean of 115 pounds and a variance of 4 pounds.

1. What is the probability that a single randomly selected piece of glass will have breaking strength between 118 and 120 pounds? [2 marks]

2. A new synthetic piece of glass is considered defective if the breaking strength is less than 113.6 pounds. What is the probability that a single randomly selected piece of glass will be defective? [2 marks]

3. What is the probability that out of 200 pieces of randomly selected glass, more than fifty-five of them are defective.

Innocent until proven guilty? In Japanese criminal trials, about 95% of the defendants are found guilty. In the United States, about 60% of the defendants are found guilty in criminal trials. (Source: The Book of Risks, by Larry Laudan, John Wiley and Sons) Suppose you are a news reporter following eight criminal trials. (For each answer, enter a number.) (a) If the trials were in Japan, what is the probability that all the defendants would be found guilty? (Round your answer to three decimal places.) Correct: Your answer is correct. . What is this probability if the trials were in the United States? (Round your answer to three decimal places.) Correct: Your answer is correct. . (b) Of the eight trials, what is the expected number of guilty verdicts in Japan? (Round your answer to two decimal places.) Incorrect: Your answer is incorrect. . verdicts What is the expected number in the United Sates? (Round your answer to two decimal places.) Correct: Your answer is correct. . verdicts What is the standard deviation in Japan? (Round your answer to two decimal places.) Incorrect: Your answer is incorrect. . verdicts What is the standard deviation in the United States? (Round your answer to two decimal places.) Incorrect: Your answer is incorrect. . verdicts

There was an old man with a beard

             who said, “It is just as I feared.

             Two owls and a hen,

             Four larks and a wren

             Have all built their nests in my beard”

                                                       Edgar Lear

1. A bird is chosen at random from the beard. What is the probability that it is a wren?
2. Each bird has a little tag with a letter on it, O for owl, H for hen, L for lark, and W for wren. One morning the birds are called out from the beard at random and lined up in a row from the left to the right. What is the probability that their tags are spell out WOLHOLLL?
3. How many teams of 4 birds can be chosen from the beard dwellers if each team must include at least 1 lark?
4. At least 2 larks?
5. What’s the least number of birds that can be chosen from the beard to be sure that at least 1 is a lark?
6. What’s the largest number that can be chosen without having any larks?
7. What’s the least number that can be chosen so that at least 2 birds must be of the same kind?
8. Another old man with a beard has an unlimited supply of owls, hens, larks, and wrens and wishes to choose 8 birds to nest in his beard. How many different distributions, i.e., assortments, such as 3 owls, 2 hens, no larks, and 3 wrens, can he choose?